a direct debit tax on all transfer payments(ie withdrawals) from all accounts in Australia,with no deductions allowed and no tax on income is a better idea
just about every individual and every company operating in Australia has an account that processes transfer payments
every debit would result in an immediate credit to the national treasury...credits would not be taxed
in 2013-2014 financial year the gross value of daily transfer payments in australia from domestic and international sources was 408.9 billion dollars (rba stats)...it can be assumed that a sizable percentage of that amount was a debit from an australian account
international companies have australian accounts...remitting funds overseas is a debit from an australian account...
even simple back of the envelope calculations show that such a tax could be levied at a very small level and still produce more revenue(credited daily to national treasury) than all present taxes combined
disallowing deductions makes the government agnostic about economic activity because they no longer have to favour one interest over another...it also greatly reduces rent seeking behaviour
eliminating income tax is an immediate boon to millions of australian individuals...
if anyone can see flaws in this logic i'm happy to hear them
what i do know is the present system doesn't work...does anyone think australia's wealthiest individuals(reinhardt, stokes, packer etc) declare all their earnings as income?...over the course of one year they shuffle a lot of money around, much of it is a debit
